Bipartisan bill would give passenger, smaller railroads more time to get liability coverage

U.S. Reps. Seth Moulton (D-Mass.) and Troy Nehls (R-Texas) earlier this month introduced the Passenger Rail Liability Adjustment Act (H.R. 5697), which would provide commuter, passenger and short-line railroads more time to secure liability insurance following adjustments to insurance caps.

Under current law, when the federal liability cap for passenger railroads is adjusted due to inflation in early 2026, the railroads have only 30 days to obtain new insurance coverage reflecting the higher cap. The bill would extend that time to 90 days, according to a press release from Moulton's office.

Currently, affected railroads are required to have $323 million in liability coverage to protect the railroad from third-party claims. Next year, that cap is expected to rise significantly, potentially close to $400 million, to reflect the last five years' inflation. Extending the time the railroads have to obtain new insurance from 30 days to 90 days will ease pressure on the commuter rail systems, Amtrak, Brightline and short lines, said officials from Moulton's office. 

The American Short Line and Regional Railroad Association, the Commuter Rail Coalition (CRC) and Brightline have come out in favor of the bill.

The CRC is pushing for the inclusion of a permanent solution to this problem in the upcoming reauthorization of the federal surface transportation programs, according to a CRC press release.